Insurance Vocab
A contract between a person and a company that provides financial protection against loss.
What is Insurance?
The amount of miles you drive in the vehicle per year.
What is your mileage?
This type of plan requires you to stay in-network and get a referral to see a specialist, but usually has the lowest costs.
What is an HMO?
Insurance that helps pay for your pet’s vet bills, medications, and emergency care.
What is pet insurance?
Insurance that bundles home, auto, or renters together to give you a discount.
What is multi-policy discount?
This is the chance that something bad, like an accident or fire, might happen.
What is risk?
Protects you if you are hit by a driver who does not have insurance or does not have enough insurance to cover the damages.
What is uninsured or underinsured motorist coverage?
This percentage-based cost kicks in only after you meet your deductible. You might pay 20% while your insurer pays 80%.
What is co-insurance?
The part of a renters policy that protects you if a guest slips, falls, and sues you—even though you don’t own the property.
What is personal liability coverage?
A type of insurance that replaces your income if you cannot work due to sickness or injury.
What is disability insurance?
This is the amount of money you must pay yourself before the insurance company helps cover the rest of the costs.
What is a deductible?
A tree falls on your vehicle after a hurricane sweeps through your town. The auto coverage that will cover the losses that are out of your control.
What is Comprehensive Auto Insurance?
This government insurance program mainly covers adults age 65 and older and includes Parts A, B, C, and D.
What is Medicare?
A storm blows part of the roof off your apartment, soaking your bed and clothes and forcing you to stay in a hotel for two nights.
What is coverage for damaged personal property and loss of use?
Insurance that pays out a lump sum of money to your beneficiary when you die.
What is life insurance?
The maximum amount the insurance company will pay for a covered loss.
What is the Limit?
Covers damages and injuries you cause to others if you are at fault in an accident.
What is Liability Coverage?
Thanks to the Affordable Care Act, young adults can remain on their parents’ health plan until this age.
What is 26?
Your apartment is broken into and your laptop, TV, and $1,000 worth of items from your side business are stolen.
What is full coverage for personal items but only limited coverage (about $200) for business property?
A legal agreement stating the insurance company will no longer cover you if you lied or intentionally left out important information on your application.
What is a policy void/voided policy?
A person who helps you find and buy the best insurance policy.
What is a Broker?
The minimum requirement for auto insurance in Florida.
What is $10,000 in Personal Injury Protection (PIP)
Most Americans receive their health insurance from this source rather than buying it individually.
What is their employer?
Your dog swallows a sock and needs emergency surgery. The total bill is $4,800. Your pet insurance policy has a $500 annual deductible, 20% coinsurance, a $5,000 annual limit, and does NOT cover pre-existing conditions. Last month, your dog was treated for stomach issues before the policy started, but the vet said the sock incident is unrelated.
What is paying the $500 deductible plus 20% of the remaining cost, while insurance covers the rest because the condition wasn’t pre-existing?
You buy a used bike for $900, crash it one week later, and discover you purchased a service contract instead of actual insurance. The contract only covers mechanical failure, not accidents.
What is realizing that service contracts are not insurance and do NOT cover accidental damage?